If you are a Georgia resident who has fallen behind on credit card, installment loan or other debt payments, your creditor will typically make phone calls and send letters in an attempt to compel you to catch up on your payments. If you do not respond or if you demonstrate unwillingness to bring your account current, Georgia law permits creditors to garnish your earnings and bank account balances.
Legal Authorization
Title 18, Chapter 4 of the Georgia Annotated Code authorizes garnishment of wages and bank accounts in Georgia. These articles also establish the procedures creditors must follow to legally garnish your wages or bank account.
Judgment
Before a creditor can garnish your wages or funds, it must first obtain a legal judgment against you for the debt you owe. The creditor files a civil suit, typically with the magistrate court in the county where you live. The court notifies you of the lawsuit and gives you 30 days to respond. If you do not respond or provide a valid defense, such as proof that you have paid the debt, the court will typically award a default judgment to the creditor.
Wage Garnishment Limitations
Georgia law follows federal limitations on how much a creditor can garnish from your wages, and the types of income that are exempt from garnishment. A creditor cannot garnish disability benefits, Social Security income, child support income and most insurance benefits. A creditor may only garnish 25 percent of your disposable income, which is the portion of your earnings after statutory deductions such as federal and state taxes. If you earn less than 30 times the federal hourly minimum wage each week, your income is exempt from garnishment.
Bank Garnishment Rules
Georgia law does not place specific limitations on amounts a creditor may garnish from your bank account, except that it may not garnish more than the total amount you owe, plus court costs and interest of up to 12 percent per year. However, Georgia law provides an exemption for $400 of personal property, including cash.
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